Subject: Oil sands – where next for EU energy policy?
June 24, 2011 in Live Debates
Background
High oil prices and technological advances have turned oil sands into a commercially-viable source of fuel. A number of energy companies have invested heavily in expanding oil production from oil sands in Canada, which is home to close to half the world’s oil sands reserves. The European Union imports very little oil derived from Canada’s oil sands, but fuel from oil sands has recently become a point of contention.
The European Union’s fuel quality directive, which was agreed in 2009, requires oil companies operating in Europe to cut the greenhouse-gas emissions of their products by 6% between 2010 and 2020. The EU was supposed to adopt emission footprint values for all types of fossil fuels by 1 January 2011. But this technical decision has been postponed repeatedly.
The European Commission is considering whether to assign a higher emission footprint value to oil sands because of the energy-intensive techniques used in the extraction process.
Environment groups are opposed to production of oil from oil sands on the grounds that extraction takes place in untouched forest areas and can produce considerable amounts of toxic waste. They also argue that putting oil sands on an equal footing with conventional oil would send out a wrong signal about the EU’s commitment to de-carbonising its economy, and would encourage the exploitation of oil sands in other parts of the world, which are less democratic and regulated, instead of encouraging the world towards the use of cleaner energy sources.
The Canadian government and European energy companies investing in oil sands point out that CO2 emissions from oil-sands production have been reduced by nearly 40% since the 1990s. They argue that the carbon intensity of oil sands, taken along the entire production chain, is within the same range or lower than other crude oils and that technological innovation can deliver further reductions.
As worldwide oil-sands reserves are equivalent to more than twice the current reserves of conventional oil, the stakes are high. EU member states appear undecided. The European Commission is still pondering its final decision, and independent studies diverge on the actual carbon footprint of oil sands.
Is it justified for the EU to adopt specific measures on the oil sands? How should other high carbon crudes be treated? What is the actual carbon footprint of oil sands? How does this compare to other fossil fuels? Can technology help to mitigate it? What about other environmental impacts of oil sands development? How compatible is it with EU climate change policy? Would an EU decision to penalise oil sands affect the world’s use of fossil fuels?
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Timing
18.00-18.30 Welcome of participants and registration
18.30-18.35 Introduction of participants by Simon Taylor, news editor, European Voice
18.35-19.05 Panel discussion
- Satu Hassi MEP, co-ordinator for the greens in the environment committee, European Parliament
- Jeanette Patell, second secretary, economic and trade policy, Mission of Canada to the European Union
- Samantha Gross, director, integrated research, IHS CERA
- Nuša Urbančič, policy officer, fuels and electrification, Transport & Environment
- Pierre Noël, senior research associate, Cambridge University
19.05-19.55 Debate (audience participation strongly encouraged)
19.55-20.00 Conclusions by John Abbott, senior vice-president heavy oil, Shell
20.00 Networking reception
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Location
Museum of Natural Sciences
Rue Vautier 29
B-1000 Brussels
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